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Home prices jump, but new-home sales drop

January home prices showed their best annual gains in almost seven years, according to one closely-watched housing barometer. But a separate report Tuesday said new-home sales in February fell 4.6% from January to a seasonally adjusted annual rate of 411,000.

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Home prices in January posted their best annual gains since summer 2006, a closely-watched housing barometer shows.

But a separate report Tuesday said new-home sales in February fell 4.6% from January to a seasonally adjusted annual rate of 411,000. January's rate had been the strongest since September 2008 and many economists had expected some decline.

Even with February's decline, sales were 12.3% higher than a year ago.

January prices rose 8.1%, according to the Standard & Poor's/Case-Shiller Home Price Index for 20 leading cities. The index, released Tuesday, showed a 6.8% year-over-year gain in December.

Tuesday's reports add to recent signs of a nascent housing recovery, driven by strengthening demand that's outpacing the supply of houses for sale.

Existing home sales for February were the highest in more than three years, the National Association of Realtors reported last week. Housing starts last month, though rising only modestly from January, were up almost 28% from February last year.

Rebound in home prices marches on

Standard & Poor's/Case-Shiller Home Price Index

A look at home price changes in the nation's 20 biggest cities in January 2013

Metro Area

January Index 1

Change from Dec. (%)

Change from Jan. '12 (%)

Atlanta

96.90

1.0

13.4

Boston

153.80

0.0

4.0

Charlotte

115.15

0.2

6.0

Chicago

111.62

-0.9

3.3

Cleveland

100.07

-0.5

4.8

Dallas

120.51

0.0

7.0

Denver

134.17

0.0

9.2

Detroit

80.01

-0.9

13.8

Las Vegas

104.04

1.6

15.3

Los Angeles

180.23

0.9

12.1

Miami

153.51

0.8

10.8

Minneapolis

124.95

-0.5

12.1

New York

161.64

0.1

0.6

Phoenix

126.69

1.1

23.2

Portland

140.74

-0.4

8.3

San Diego

163.28

-0.6

9.8

San Francisco

147.45

0.1

17.5

Seattle

141.30

-0.3

8.7

Tampa

135.20

0.9

8.9

Washington, D.C.

187.42

-0.7

5.9

1 The indexes have a base value of 100 in January 2000; so an index value of 150 translates to 50% appreciation for a typical home in the market.
Source: S&P Dow Jones Indices and Fiserv